Leadership Styles and Change Readiness: Improving Employee Performance During the COVID-19 Pandemic

Abstract

AbstractThe COVID-19 pandemic necessitated significant organizational changes, particularly in higher education institutions in Indonesia, leading to a transition to distance learning and remote working arrangements. This study examined the effects of different leadership styles, i.e., authoritarian, democratic, and laissez-faire, on employee performance, focusing on the mediating role of change readiness. Data were collected from 42 business schools in Yogyakarta using a survey method, and the results were analyzed using the SmartPLS 3.0 application. The results indicate that while authoritarian leadership positively affects change readiness, it does not significantly improve employee performance. Conversely, democratic leadership positively influences both change readiness and employee performance. Laissez-faire leadership has a positive effect on change readiness but does not significantly improve employee performance. The study concludes that change readiness significantly mediates the relationship between leadership styles and employee performance, highlighting the importance of adaptive leadership in managing organizational change during the pandemic. Keywords:Authoritarian Leadership, Democratic Leadership, Laissez-Faire Leadership, Change Readiness, Employee Performance